Aussie smashed on RBA rate cut chatter, EZ final CPI – Up next

By FXStreet FXStreet (Mumbai) – The USD/JPY pair staged a solid recovery in Asia, with the risk-on trades offering further support to the USD bulls. While the Antipodes were unperturbed by improving risk-appetite as the Aussie fell sharply lower on increased RBA rate cut bets next month and the Kiwi also keeps losses weighed by poor CPI figures.

Key headlines in Asia

RBA Financial Stability Report: Lending standards tighter

Fed’s Mester: Time to move off zero rates

Dominating themes in Asia – centered on JPY, AUD, NZD

Broad based US dollar strength, backed by the recent impressive set of US macro releases and increased demand for risk assets, was the main factor driving Asia-pac currencies this session. While the persisting risk-on sentiment also triggered renewed rally in the Asian equities, tracking the strong performance on the US markets overnight.

As a result, the USD/JPY pair found renewed strength and recovered over 1 big figure from previous lows. The US CPI dropped 0.2% m/m in Sept, matching forecasts while the core CPI accelerated to 1.9% in September, outpacing the 1.8% gain expected. The upbeat price pressures print along with solid jobless claims (lowest since 1973) brought a halt to the recent series of poor US fundamentals and …read more

Source:: FX Street